Reliance Communication, Tata Teleservices and Aircel, too, have applied to bid for the sparse airwaves. September 14, 2016 was the last day to submit applications for the same.

Reliance and Aircel, in a statement late in the evening on Wednesday said that the two companies will be merging their mobile businesses to create India's fourth largest telecom operator. The two are likely to bid for spectrum individually of each other as merger process is unlikely to close so soon.

This is going to be the largest ever spectrum auction in India where 2,354 MHz of mobile airwaves across seven bands (700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 Mh) will be put on auction.

This spectrum auction is expected to fetch bids worth Rs 5.63 lakh crore. However, stretched balance-sheets and overwhelming debt of Indian telecom companies coupled with high bid price is likely to dampen the mood, some analysts and industry experts predict.

“We are selling a lot of good quality spectrum, so prices will be high,” Telecom Secretary J S Deepak had said, adding that “almost all” the companies participated in a pre-bid meeting held recently, a Telecomtalk.Info report.

Government is expecting 25% upfront payment for the spectrum below 1 GHz, which would be assigned within 30 days after the bidding.